Plans for a directly-elected mayor for Suffolk and Norfolk and the reorganisation of the counties' councils are being discussed by the government.
Ministers want to abolish the two-tier system and replace it with unitary councils - effectively abolishing districts and boroughs.
But the borough and district councils have put out a joint statement rejecting the proposals - and saying they know nothing about the plans.
The proposal does not necessarily mean that the existing county councils will take over all district council functions like planning, housing and waste collection.
It is understood that the radical changes could ignore historic county boundaries between Norfolk and Suffolk and see four unitary councils created across the two counties.
There would be a combined authority for Norfolk and Suffolk providing a strategy for the region - led by a mayor fulfilling a similar role to that in Greater Manchester or West Yorkshire.
The timescale for the changes have not been set, but the government is keen to bring in the reforms during the current parliamentary term - possibly by 2028 or even by 2027 if there is a quick agreement.
At present next May's elections for Suffolk County Council are still on the diary - but sources have said if there is rapid progress towards a settlement over the next few months they could still be scrapped.
The aim of the changes is cut bureaucracy and costs - and also to make councils less confusing for residents who are often confused about which body is responsible for which service.
Council leaders have been in talks with ministers about the plans. Matthew Hicks from the county council said: “Suffolk County Council has met with the government to understand what any new possible devolution options might be.
"At that meeting, the minister outlined the government's desire for devolution accompanied by local government reorganisation.
"Nothing has been agreed and these discussions are ongoing. We welcome further engagement and look forward to learning more in the Devolution White Paper.”
In a joint statement, Suffolk's five borough and district councils said: "Any suggestion that two-tier local government is about to be abolished is only speculation at this stage and we have received no information or guidance to this effect.
"We await the Government’s White Paper and will assess the content, and its implications, at that point.
"The system of two-tier local government has served Suffolk residents well and has reduced demand for more costly services in the wider public sector.
"Districts and Boroughs are close to their communities, understand their needs and respond swiftly - continuously improving residents' quality of life, especially for vulnerable citizens.
"In Suffolk, the two-tier system has also been enhanced through a series of district mergers and longstanding partnerships.
"However, if a single-tier local government model were to be pursued then we want to ensure that whatever unitary arrangements are introduced have the interests of our communities and residents at their heart.
"Local authorities must be close to their communities and focused on delivery. Bigger is not always better or necessarily more efficient for local services."
Ipswich Council's Labour leader Neil Macdonald added that he welcomed the proposal for mayor for a combined Suffolk and Norfolk authority, but felt this should not be linked to a reform of the structure of local government.
The White Paper is expected to be published later this week - and there is likely to be a great deal of discussion over the next few weeks.
But it is understood that the government is keen to press ahead with the plans fairly quickly -even if there is opposition from some of the councils involved.
Jack Abbott, Member of Parliament for Ipswich and the government’s East of England Mission Champion, said: “We have a once-in-a-generation chance to devolve real power and investment to Suffolk and Norfolk.
"We cannot pass up the opportunity to secure a deal which is ambitious and properly values our region.
“I continue to work cross-party and cross-county - with the Government, local MPs and council leaders - to make sure we deliver a historic settlement for our town, our county, and our region.”
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